The GST Council will review the progress made by the states in incorporating changes regarding taxation of online games in SGST Law.
The 52nd meeting of the Goods and Services Tax or the GST Council will be conducted at Vigyan Bhawan on Saturday 7 October where matters similar as extending the concessional tax rate on vehicles for visually impaired persons, impunity on millets sold in powdered form and clarifying tax on bank and commercial guarantees among other are likely to be talked over.
Important points of 52nd GST Council Meeting
- Online Gaming Taxation Under Review – The GST Council is likely to review the progress made by the states in regard to taxation of online gaming in SGST laws as approved by the council in its August meeting, news agency PTI reported. The Central Government has notified the corrections in GST Legislation passed by the Lok Sabha in august so as to put a 28% duty on online gaming, casinos and horse racing. The amendments came into effect from October 1.
- Clarity on Betting Levy in Online Gaming – The Council, chaired by the Finance Minister Nirmala Sitharaman and comprising state counterparts, had last month cleared amendments to Central GST and Integrated GST laws to give clarity on the levy of 28 per cent on the full face value of bets in online gaming casinos and horse races.
- Roadmap for Taxation of Banks and Commercial Guarantees – The Economic Times reported the GST Council is anticipated to give a road map on the taxation of bank and commercial guarantees.
- Exemption Considerations – The Council is also anticipated to discuss exempting distilled alcohol used to manufacture liquor from the indirect tax at the meeting, news agency Reuters reported citing a source. Highly distilled orextra-neutral alcohol contains 95% alcohol by volume and is used for producing liquor for manufacturing purposes.
- The council will also consider a suggestion to lower GST on molasses from 5% from 28%, the source said. Molasses, a derivative sugar product, is used to make extra – neutral alcohol and ethanol.
- The government is likely to study how to tax some services delivered by cryptocurrency platforms.
- Revisiting the earlier decisions – The panel will also consider a plan to exempt GST on some millet flour products from 18% at present and plans to stick to 18% tax applicable on electric vehicle batteries.
Earlier, during its 51st meeting, the GST Council suggested variations in the CGST Act 2017 and IGST Act 2017. These recommendations encompassed changes to Schedule III of the CGST Act 2017, aimed at offering a better understanding regarding the taxation of deals related to casino, horse racing and online gaming.